Charlottetown Announces Budget

Charlottetown Announces $57.14 Million Balanced Budget

Posted on 04/17/2019

The City of Charlottetown released its 2019-2020 budget on Wednesday, April 17. As a result of good managerial operational oversight, stable revenues, and an anticipated operating surplus from last year’s budget, City Council did not require an increase in either residential or commercial municipal tax rates for the 2019-2020 budget year.

The City Corporation’s 2019-2020 balanced budget is $57.14 million and the Water and Sewer Utility budget is also balanced with expenditures at $13.3 million.

“We have avoided increasing residential municipal tax rates for a number of years, but we continue to challenge ourselves to offer quality programming and great services for the citizens of Charlottetown, year over year,” said Councillor Terry Bernard, Chair of the City’s Finance, Audit and Tendering Committee. “We are managing today as we plan for tomorrow; building a strong financial footing with effective financial policies, long-range financial plans, and operational procedures that will benefit the city into the future.”

The City operated a one-time 15-month budget from January 1, 2018 to March 31, 2019 as a result of last year’s requirements under the Municipal Government Act. The City anticipates having a surplus of approximately $1.8 million from that budget, which will carry forward into the 2019-2020 budget. The City has returned to a 12-month budget period with its new fiscal year matching that of the Province of PEI from April 1 to March 31 annually.

The Water and Sewer Utility – a separate, independent corporation from the City Corporation – started the 2018 fiscal period with a $673,954 carry-over deficit, and ended the fiscal period this year with a projected deficit of $1.2 million, requiring an adjustment to water and sewer rates for the 2019-2020 budget period. The standard residential water metered charge will increase 1 cent per day from $0.326/day to $0.336/day. The water consumption charge will increase 11.8 cents per cubic metre from $0.264/m3 to $0.382/m3. The standard residential sewer metered charge will increase 7.5 cents per day from $0.502/day to $0.577.day. The sewer treatment charge will increase 34 cents per cubic metre from $0.580/m3 to $0.920/m3 (1,000 litres in a cubic metre). The rate increases amount to approximately 32 cents per day for the average residential customer.

“The Water and Sewer Utility has been completing significant infrastructure upgrades and will continue doing so for the foreseeable future. This requires significant investment,” Councillor Bernard said. “In order to maintain the high level of service, water quality and wastewater treatment that is expected of the Utility, it is necessary to adjust rates for 2019-2020. Going forward, both the water and sewer rates will be adjusted annually by CPI to try to mitigate the need for large increases in the future. That said, even with the rate increases, our water and sewer services are still offered at very competitive rates compared to other utilities in the region.”

Earlier this Spring, the City’s Capital budget was passed unanimously by Council in the amount of $14.6 million, marking a significant investment in the city’s economy. The Utility’s Capital budget was also approved by Council at a net contribution of $7.3 million. With federal and provincial funding, along with the City’s investment, the total Capital budget expenditure of $43.88 million, with some of the investment highlights including: $2.68 million for roads and street; $2.68 million in storm water management; $1.3 million in fire services; $1.22 million in recreation infrastructure; $500,000 in transit and $263,000 in Police Services, among other investments.

To read the full budget address and access the City of Charlottetown’s operational and capital budget documents, visit: www.charlottetown.ca/budget